JANESVILLE, Wis. – After sitting vacant since the 1990s, Janesville’s historic Monterey Hotel has plans to open once again- this time, as luxury apartments.
Built in the 1930s to provide short term lodging for those traveling along the nearby rail line, the Monterey Hotel was an example of Art Deco design. It’s popularity soared through the 50s and 60s, with the hotel’s three bars and 100 plus rooms drawing the likes of Jackie and John Kennedy.
“It’s really kind of a gem to the community and cornerstone to the downtown area,” said Tim Maahs of the Rock County Historical Society. “When you lose these structures, they’re gone forever.”
Maahs says the decline of the Monterey came with the decline of Janesville itself. In the 1970s and 1980s, people began to leave downtown. A mall was built on the outskirts of town, and downtown vacancies soon followed. In the early 1990s, the hotel saw its last customer before boarding its doors. Following a failed return as a senior living facility under a California-based company, investor Jim Grafft purchased the building in bankruptcy court for $350,000.
“When I bought it, I had very clear plans to let it sit,” Grafft said. “Because it was a very troubled neighborhood at the time. It wouldn’t have been worth investing in it. My goal was to buy it and sit on it. I was hoping for ten years, but that just didn’t turn around.”
Instead, the building sat empty for more than 20 years. While Grafft began trying to plan its comeback in the early 2010s, disagreements followed with the city of Janesville about parking ramps and tax breaks.
“I think the Monterey Hotel has probably been the front page of the Janesville Gazette more times than any other building in Rock County,” Grafft said. “There’s just been a fascination with the building because it is a downtown icon.”
This past week, the City of Janesville struck a TIF deal with Grafft that solidified plans to move forward with the building’s restoration. Beginning in March, work will begin on gutting the building’s interior and turning it into 51 luxury apartments.
“It’s going to be a 100 percent total gut job, which will mean all new plumbing, all new heating,” Grafft said. “Until recently, I don’t think there was a need for the building. The easiest thing to do is buy a building. The hardest thing to do is find a proper use for the building. Sometimes it’s like a bottle of wine. You’ve just got to put it down and hold it.”
Grafft is pairing with West Allis-based Cardinal Capital Management, who will take on the $9.5 million project.
“For this building to be rehabilitated into some cool, high end apartment units, that’s going to be really important for the downtown,” said Janesville Economic Development Director Gale Price. “That means more people walking around patronizing restaurants and retailers. It helps to create a demand for other retailers to show up in the area.”
Work will start on the building in March 2021 and is slated to finish the following year.
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